Gati shakthi

1. PM
GATI SHAKTHI

2.  PM Gati Shakti is a digital platform that connects 16 ministries — including
Roads and Highways, Railways, Shipping, Petroleum and Gas, Power, Telecom,
Shipping, and Aviation — with a view to ensuring holistic planning and
execution of infrastructure projects.
 The Gati Shakti National Master Plan will have an important economic
multiplier effect at home, it must also be leveraged to have an external impact by
aligning it with India’s regional and global connectivity efforts.
 Prime Minister Narendra Modi has launched the ambitious Rs 100 lakh crore
Gati Shakti Master Plan to provide multi-modal connectivity to more than
1,200 industrial clusters.
About

3. Scheme Department/ Ministry Features
National Investment Fund
In January 2005, the Government decided to constitute a ‘National Investment
Fund’ (NIF) into which the realization from sale of minority shareholding of
the Government in profitable CPSEs would be channelized.
Income from the fund is used in investment in various social projects, capital
investment in some selected profitable and revivable enterprises. This is based
upon the idea that disinvestment does not affect the social objectives of the
government.
Deendayal Upadhyaya Gram
Jyoti Yojana
Ministry of Power  Aim: to augment power supply to the rural areas and to strengthen sub-
transmission and distribution systems
 To separate agriculture and non agriculture feeders facilitating judicious
rostering of supply to agricultural and non-agricultural consumers in rural
areas
Sagarmala scheme National Sagarmala Apex Committee
(NSAC)envisaged; will be chaired by Minister
of Shipping + CMs and CSs of relevant states
 Port-led development: develop a string of ports around India’s coast,
Supporting and enabling Port-led Development through appropriate policy
and institutional interventions
 Efficient Evacuation to and from hinterland
Swiss Challenge Method  ‘Swiss Challenge Method’ in Infrastructure: Swiss challenge method is a
process of giving contracts. Any person with credentials can submit a
development proposal to the government. That proposal will be made online
and a second person can give suggestions to improve and beat that proposal.
It is a method where third parties make offers (challenges) for a project
within a designated period to avoid exaggerated project costs.

4. Why is infrastructure important?
 Infrastructure spending has a multiplier effect on the economy.
 Apart from the direct benefits such as employment generation, demand for raw materials for
construction, etc., there would also be indirect benefits to the economy.
 The second-order effects are those that are brought on by improved connectivity.
 People and goods would move faster between destinations reducing logistics costs.
 Studies by the RBI and the National Institute of Public Finance and Policy have shown that
for every rupee spent by the government in creating infrastructure, GDP gains worth Rs. 2.5-
3.5 accrue.
 For balanced regional development, it is important that multiple urban clusters sprout up
across the country and are not concentrated in certain areas only. This is possible by a
coordinated approach in infrastructure development, for instance, roads would feed into
railway lines which in turn would feed into ports, efficiently moving goods from the
hinterlands to the ports.

5. From Economic Survey 2022
 Other Initiatives to improve logistics ecosystem Government has taken various steps in last few years to
improve logistics efficiency through infrastructure enhancement and process reforms. Some of them include
introduction of FASTag, Turant Customs, mandatory RFID (Radio Frequency Identification) tagging at all
EXIM bound containers, E-San chit, Indian Customs Enquiry for Trade Assistance and Knowledge
(ICETRAK), ICEDASH (Indian Customs EDI Dashboard), Secured Logistics Document Exchange (SLDE),
Import Clearance System, GHG Calculator etc. In order to ease maritime trade, efforts are being undertaken on
development of port-specific master plans and a coordination mechanism for implementation of the same,
upgradation of select Land Customs Stations (LCS) to Integrated Check Posts (ICPs), promoting Free Trade
Warehousing Zones, etc.

6. Union Budget 2022-23: PM Gati Shakti
 FocusArea for Budget 2022-23:
 Its scope will encompass the seven engines (Roads, Railways, Airports, Ports, Mass
Transport, Waterways and Logistics Infrastructure).
 It will also include the infrastructure developed by the state governments as per the
GatiShakti Master Plan.
 The touchstone of the Master Plan will be world-class modern infrastructure and
logistics synergy among different modes of movement – both of people and goods – and
location of projects.

7. Union Budget 2022-23: PM Gati Shakti
 What are the Major Proposals for PM GatiShakti?
Road Transport:
 PM GatiShakti Master Plan for Expressways will be formulated in 2022-23 to facilitate
faster movement of people and goods.
 National Highways network to be expanded by 25,000 km in 2022-23. Rs. 20,000
crore to be mobilized for the expansion.
Seamless Multimodal Movement of Goods and People:
 The data exchange among all mode operators will be brought on Unified Logistics
Interface Platform (ULIP), designed for Application Programming Interface (API).
 This will provide real time information to all stakeholders, lead to efficient
movement of goods through different modes, and improve international competitiveness.
 Open-source mobility stack, for organizing seamless travel of passengers will also be
facilitated.

8. Union Budget 2022-23: PM Gati Shakti
 What are the Major Proposals for PM GatiShakti?
 Multimodal Logistics Parks:
 Contracts for implementation of Multimodal Logistics Parks at four locations through PPP (Public-
Private Partnerships) mode will be awarded in 2022-23.
 Railways:
 Railways will develop new products and efficient logistics services for small farmers and Small and
Medium Enterprises, besides taking the lead in integration of Postal and Railways networks to provide
seamless solutions for movement of parcels.
 ‘One Station-One Product’concept to help local businesses & supply chains.
 As a part of Atmanirbhar Bharat, 2,000 km of network will be brought under Kavach, the indigenous
world-class technology for safety and capacity augmentation in 2022-23.
 400 new-generation Vande Bharat Trains to be manufactured during the next three years.
 100 PM GatiShakti Cargo Terminals for multimodal logistics facilities will be developed during the next
three years.

9. Union Budget 2022-23: PM Gati Shakti
 What are the Major Proposals for PM GatiShakti?
 Mass Urban Transport including Connectivity to Railways
 Innovative ways of financing and faster implementation will be encouraged for building metro
systems of appropriate type at scale.
 Multimodal connectivity between mass urban transport and railway stations will be facilitated on
priority.
 Parvatmala: National Ropeways Development Programme:
 As a preferred ecologically sustainable alternative to conventional roads in difficult hilly areas, National
Ropeways Development Programme will be taken up on PPP mode.
 The aim is to improve connectivity and convenience for commuters, besides promoting tourism. This
may also cover congested urban areas, where conventional mass transit systems are not feasible.
 Capacity Building for Infrastructure Projects:
 With technical support from the Capacity Building Commission, central ministries, state governments,
and their infra-agencies will have their skills upgraded.
 This will ramp up capacity in planning, design, financing (including innovative ways), and
implementation management of the PM GatiShakti infrastructure projects.

10. Vision of PM Gati Shakti
 The existing infrastructure schemes under various ministries will be incorporated into this plan, including
Sagarmala, Bharatmala, UDAN scheme, inland waterways, etc.
 The master plan will also cover economic zones such as pharmaceutical clusters, textile clusters, defence
corridors, industrial corridors, electronic parks, fishing clusters, and agri zones.
 It will also leverage technology extensively including spatial planning tools with ISRO(Indian Space Research
Organisation) imagery developed by BiSAG-N(Bhaskaracharya National Institute for Space Applications and
Geoinformatics).
 PM Gati Shakti will provide the public and business community information regarding the upcoming
connectivity projects, other business hubs, industrial areas and surrounding environment.
 The program has been launched as an umbrella integrator of ₹111-lakh crore worth of projects under
the National Infrastructure Pipeline (NIP) for 2020-25.

11. National Infrastructure Pipeline
 In the budget speech of 2019-2020, Finance Minister announced an outlay of Rs 100 lakh Crore for
infrastructure projects over the next 5 years.
 NIP is a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the
quality of life for all citizens.
 It will improve project preparation, attract investments (both domestic & foreign) into infrastructure, and will
be crucial for attaining the target of becoming a $5 trillion economy by FY 2025.
 Covers both economic and social infrastructure projects.
 The task force headed by Atanu Chakraborty on National Infrastructure Pipeline (NIP), in May 2020,
submitted its final report to the Finance Minister.
 Important recommendations and observations made:
 Investment needed: ₹111 lakh crore over the next five years (2020-2025) to build infrastructure projects and drive economic
growth.
 Energy, roads, railways and urban projects are estimated to account for the bulk of projects (around 70%).
 The centre (39 percent) and state (40 percent) are expected to have an almost equal share in implementing the projects, while
the private sector has 21 percent share.
 Aggressive push towards asset sales.
 Monetisation of infrastructure assets.
 Setting up of development finance institutions.
 Strengthening the municipal bond market.

12. Background
Benefits
Pillars
Key Discussion Area

13. Background
 Lack of coordination between different Departments
 Wasteful expenditure
 Time-taking approval process
 Multiplicity of regulatory clearances
 Hostile land acquisitions
 Difficulties in getting environmental clearance
Example:
Traditionally, once a road was constructed, other agencies dug up the constructed road again for activities
like laying of underground cables, gas pipelines etc. This not only caused great inconvenience but was also
a wasteful expenditure. To address this, efforts were made to increase coordination so that all cables,
pipelines etc. could be laid simultaneously. Steps have also been taken to address other issues like time-
taking approval process, multiplicity of regulatory clearances etc. In the last few years, the Government
has ensured unprecedented focus on infrastructure through a holistic outlook. This helps to address the past
issues through institutionalizing holistic planning for stakeholders for major infrastructure projects. Instead
of planning & designing separately in silos, the projects will be designed and executed with a common
vision.

14.  The plan aims to build Next Generation Infrastructure which will improve Ease of Living as well as Ease of Doing
Business.
 It will facilitate the last mile connectivity of infrastructure and also reduce travel time for people.
 It will provide the public and business community information regarding the upcoming connectivity projects, other business
hubs, industrial areas and surrounding environment
 The plan enables the investors to plan their businesses at suitable locations leading to enhanced synergies.
 It will create multiple employment opportunities and give a boost to the economy.
 It will improve the efficiency of port operations and cargo handling capacity and cut the vessel turnaround time.
 The plan will improve the global competitiveness of local products by cutting down the logistics costs and improving the
supply chains.
 Just as JAM (Jan Dhan, Aadhar, Mobile) trinity revolutionized the access of government facilities to the people, PM Gati
Shakti will do the same for the field of Infrastructure.
 It will boost economic growth, attract foreign investments and enhance the country’s global competitiveness.
 It will enable smooth transportation of goods, people and services and creating employment opportunities.

15. Comprehensiveness
It will incorporate the existing infrastructure schemes of
different departments and state governments like Bharatmala,
Sagarmala, inland waterways, UDAN etc.
Analytical
It will offer 200 layers of geospatial data, including on existing infrastructure as
well as geographic information about forests, rivers and district boundaries.
Synchronization
PM GatiShakti will help in synchronizing the activities of each department in a holistic
manner by ensuring coordination of work between them.
Prioritization
Different Departments will be able to prioritize their projects through cross–
sectoral interactions.
Dynamic
The portal will allow various government departments to track the progress
of various projects in real time and at one centralised place.
Optimization
For the transportation of goods from one place to another,
the plan will help in selecting the most optimum route in
terms of time and cost
Pillars

16. Targets to be achieved
 11 industrial corridors and two new defence corridors in Tamil Nadu and Uttar Pradesh.
 4G connectivity in all villages
 Increasing renewable energy capacity to 225 GW from 87.7 GW
 Expanding the national highway network to 2 lakh km
 Increasing length of transmission network to 4,54,200 circuit km
 Creation of 220 new airports, heliports and water aerodromes
 Increasing cargo handling capacity of railways to 1,600 million tons from 1210 million tons
 Adding 17,000 km to gas pipeline network
 202 fishing clusters/harbours/landing centres and more

17. How Gati Shakti Plan can strengthen India’s economic ties with its neighbours?
 The plan will automatically generate positive effects to deepen India’s economic ties with Nepal, Bhutan, Bangladesh,
Myanmar and Sri Lanka, as well as with SoutheastAsia and the Indian Ocean region.
 India’s investment in roads, ports, inland waterways or new customs procedures generate positive externalities for these
neighbours, who are keen to access the growing Indian consumer market.
 Any reduction in India’s domestic logistics costs brings immediate benefits to the northern neighbour, given that 98 per
cent of Nepal’s total trade transits through India and about 65 per cent of Nepal’s trade is with India.
 In 2019, trade between Bhutan and Bangladesh was eased through a new multimodal road and waterway link viaAssam.
 The new cargo ferry service with the Maldives, launched last year, has lowered the costs of trade for the island state.
 Under the South Asia Sub regional Economic Cooperation Programme, India’s investments in multimodal connectivity
on the eastern coast is reconnecting India with the Bay of Bengal and Southeast Asia through integrated rail, port and
shipping systems.
 It is the alignment of a cross-border railway, the location of a border check post, or the digital system chosen for customs
and immigration processes, India’s connectivity investments at home will have limited effects unless they are coordinated
with those of its neighbours and other regional partners.
 India recently joined the Transports Internationaux Routiers (TIR) convention, which facilitates cross-border customs
procedures, none of its neighbouring countries in the east has signed on to it.

18. How PM Gati Shakti will help India’s development?
 Bring the economy out of pandemic impacts: The Covid-19 Pandemic reduced the GDP growth and resulted in large job
loss, depressed wages and consumption. The infrastructure projects will boost jobs and increase the demand for goods and
commodities, besides attracting major investments. If the Gati Shakti National Master Plan is implemented swiftly, then the
Indian economy can achieve a significant growth trajectory by mitigating the impacts of the pandemic.
 Solve issues in logistics: According to a study, the logistical cost in India is about 13%-14% of GDP as against about 7-8%
of GDP in developed economies. The plan will help India to cut down its logistics cost. Besides cutting logistics costs, the
plan is also aimed at increasing cargo handling capacity and reducing the turnaround time at ports to boost trade.
 Help in increasing economic zones and industrial parks: Currently, a number of economic zones and industrial parks are
not able to reach their full productive potential due to inefficient and fragmented multi-modal connectivity. By incorporating
infrastructure schemes under various ministries and state governments, the Gati Shakti platform will boost the last-mile
connectivity.
 Reduce implementation overlaps: Poor Infrastructure planning at present results in various challenges. The National
Master plan will help to avoid such implementation overlaps.
 Save taxpayers money
 Optimum utilization of resources and reduce both cost and time overruns
 Help in reducing human intervention within ministry: Currently, any inter-ministerial issues that arise relating to a
project are addressed in regular meetings of infrastructure-related ministries. The Gati Shakti portal would help reduce the
human intervention required as ministries will be in constant touch.

19. Challenges
 Investments from states: The Economic Survey for 2020-21 underscored the role of active Centre-State partnerships for
infrastructure building. The Survey projects maximum investments towards NIP sectors such as energy, roads, urban
infrastructure and railways for FY 2021 and 22, with about ₹8.5-lakh crore to be invested by either side annually.
 With the pandemic and its associated challenges, the state governments don’t have enough finances to invest such large
amounts. This will delay the implementation of the master plan.
 Low Credit Off-take: According to the RBI’s paper, the growth rate in credit off-take has steeply declined to 5.8% in
November 2020, as against 14.2% in 2013. This will reduce private investment in infrastructure projects. At present, there
are concerns about the declining credit offtake trends from banks as they don’t want to get into another Non-Performing
Asset (NPA) crisis in future.
 The plan does not address a few key infrastructural challenges: Land acquisition is often the biggest impediment in the
development of India. Many development projects get delayed due to land acquisition issues. Further, these delays add up to
the costs of many projects, making them a less efficient and more costly project for development. There are other issues
such as litigation issues, alienation of local communities and the violation of environmental norms, etc.
These issues make the rate of implementation of projects is very slow on global standards. The Gati Shakti master plan offers
little or no solution to these major challenges.

20. How can India improve the implementation of PM Gati Shakti?
 Address certain key issues: To the proper implementation of PM Gati Shakti, India needs to address structural and
macroeconomic stability concerns, emanating from high public expenditure.
 Tackle land acquisition decisions: With the availability of Geographic Information Systems and remote sensing
technologies under the master plan, the policymakers have to do well to reclaim lands already subjected to degradation and
pollution, rather than alienate controversial new parcels.
 Solve the credit offtake challenge: The Economic Survey for 2020-21 mentioned that India needs ₹4.5-lakh crore
investments per year from the private sector to boost NIP sectors. So, the government has to address the issues associated
with low credit offtake for successful private investments.
 Incorporate the digital features in all spheres: This can be done by adding optical fibres along with railway lines and gas
pipelines. India also needs digital solutions for aggregation of demand and supply, which can be done by bringing the open
network and open protocols under the Gati Shakti initiative.
 For instance, Tata Projects has already been using such technological solutions for its various projects like the Dravyavati
River Rejuvenation Project. Similarly, the US has built software platforms that achieve 30 to 40% savings.
 Improve the performance of roads: India needs to improve the performance of roads for a smooth supply of goods. Roads
should be made smart with automatic monitoring of traffic, drone-based support, including drone-based monitoring of
maintenance of assets.

21. Conclusion
The PM Gati Shakti will boost economic growth, attract foreign
investments and enhance the country’s global competitiveness
thereby enabling smooth transportation of goods, people and
services and creating employment opportunities. Thus, the PM
Gati Shakti will help India to realise its dream of becoming the
“business capital” of the world. But all the challenges must be
addressed on priority in order for the project to be a success.